Finance Minister Nirmala Sitharaman has urged the Indian Civil Accounts Organisation (ICAO) to collaborate with the Comptroller and Auditor General (CAG) in making the country’s annual accounts more accessible and user-friendly. She highlighted the importance of creating platforms that would allow citizens to analyze and generate customizable, simplified reports.
Speaking at an event commemorating the Civil Accounts Day 2025 in the Capital, Sitharaman emphasized the potential for conducting research based on the available data sets now that digital portals have been integrated and many states have come on board.
The Civil Accounts Day 2025 marked the 49th foundation day of the Indian Civil Accounts Service (ICAS), which plays a vital role in providing financial management services for the Central Government. The organization supports payment services, aids in tax collection, handles government-wide accounting, financial reporting functions, and conducts internal audits in the civil ministries of the central government.
During the event, Sitharaman also unveiled a compendium on the Public Financial Management System (PFMS) titled “Digitalisation of Public Financial Management in India: The Transformative Decade (2014-24).”
Sitharaman commended the efforts of the Indian Civil Accounts Service and recognized the role of PFMS in achieving governance goals such as reaching the last mile and benefiting 60 crore beneficiaries. She noted the direct delivery of over 1200 central and state schemes, including 1100 Direct Benefit Transfer (DBT) schemes, and emphasized the end-to-end digitization through integration with various external systems.
Highlighting PFMS as a network of networks, Sitharaman praised its role in strengthening cooperative federalism by integrating state treasuries and program implementing agencies. The platform has facilitated seamless financial management for millions of citizens, ensuring timely and transparent disbursement of government funds.
Secretary of the Department of Expenditure, Ministry of Finance, Manoj Govil, mentioned ongoing discussions with the CAG on harmonizing Union and States accounting codes and practices. He underscored the need to align the accounting codes of rural and urban local bodies to enhance the preparation of reliable accounts for the general government.
Govil also shared plans for the automation of the Centre’s financial accounts to make financial information readily available for analysis, leading to informed decision-making and reduced human errors. He lauded the efforts of the Controller General of Accounts (CGA) and his team for ensuring the timely submission of the Government’s financial statements to Parliament for 2023-24.
In his address, Shyam S. Dubey, Controller General of Accounts (CGA), highlighted the organization’s achievements in accounts, Public Financial Management, and capacity building throughout the year. He showcased the organization’s resilience during the COVID-19 pandemic, transferring over ₹22.85 lakh crore, including DBT schemes.
Arvind Panagariya, Chairman of the 16th Finance Commission, described PFMS as a critical digital infrastructure enabling efficient and transparent transactions between different economic entities. He suggested that UPI and PFMS should be part of India’s international diplomatic outreach and global relationships, advocating for greater integration of PFMS with state governments, urban, and rural local bodies.
The event also saw discussions on the second version of PFMS (PFMS 2.0) to further enhance its capabilities and efficiencies. Efforts are underway to automate the Centre’s financial accounts, aiming to accelerate project preparation, reduce human errors, and provide timely financial information for analysis.
Overall, the event celebrated the achievements of the Indian Civil Accounts Service and highlighted the role of PFMS in transforming public financial management in India. The focus remained on making annual accounts more citizen-friendly and enabling custom reports for enhanced transparency and accessibility.
